Building new homes generates £60bn of community investment

Latest News Tue, Aug 25, 2026 10:20 AM

The new homes built in England and Wales last year funded 42,000 new school places, more than 1,640 football pitches worth of community space and over £9 billion in affordable housing.

Building new homes doesn’t just provide places for people to live - it also supports funding for schools, parks, and affordable housing and creates hundreds of thousands of local jobs.

New statistics from the Home Builders Federation (HBF) show that home building generates more than £60 billion of social and economic value for local communities across England and Wales, highlighting the often-unseen benefits that come alongside new housing developments.

As part of planning agreements, every new housing development has to contribute to the infrastructure and services needed to support growing communities, creating benefits for both new and existing residents.

In England alone, the 209,000 homes delivered in 2024/25 are estimated to have generated more than £60 billion, which includes:

  • More than £9 billion for Affordable Housing
  • £1.3 billion for infrastructure, including around £600 million for new and improved schools
  • £188 million in spending for open spaces and leisure facilities
  • £46 billion of economic activity, supporting local economies
  • £6 billion in spending in local shops
  • 734,000 jobs supported, including around 9,000 apprentices, graduates or trainees

In Wales, the 5,159 homes completed in 2025/26 generated a further £1.1 billion in economic activity, alongside £230 million for Affordable Housing, £32 million for infrastructure and support for around 18,000 jobs.

The findings come as Prime Minister Andy Burnham launches a new era of devolution, giving local communities greater control over the decisions that shape jobs, housing, transport and public services.

With mayors set to gain greater control over funding and decision-making in their areas, new homes will have an important role to play in supporting local growth by bringing investment into communities through affordable housing, infrastructure, local businesses and jobs.

HBF is calling on Government to ensure Local Authorities have the resources and capacity needed to effectively manage and monitor Section 106 contributions, which play a vital role in delivering community facilities and infrastructure. Greater transparency around how developer contributions are used, alongside clearer guidance to ensure funding is delivered as intended, would help communities better understand the benefits linked to new housing.

As the devolution agenda progresses, HBF is also calling on mayors and local leaders to use their new powers to unlock housing delivery, support economic growth and maximise the benefits that new homes bring. By working with Government, industry and local partners, leaders can help ensure housing is delivered alongside the infrastructure, skills and investment needed to create thriving communities.

Neil Jefferson, Chief Executive of the Home Builders Federation, said: “New homes are about much more than bricks and mortar. Our research shows that home building is generating more than £60 billion in investment and economic value across England and Wales, helping to fund the affordable housing, schools, infrastructure, parks, local businesses and jobs that communities rely on.

“Behind every new development is a wider contribution that helps the community grow and thrive. As the Government’s devolution agenda gives local leaders greater responsibility for shaping the future of their areas, it is more important than ever that we work together to unlock housing delivery and ensure the benefits of new homes are felt by both new and existing residents.”

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